Ladies & Gentlemen, the S&P 500′s Worst Performing Stocks of 2013

By Ben Levisohn

Yes, there are still more than two hours left in the day, but it’s New Year’s Eve and unless something crazy happens these five stocks look to be the worst of the worst in the S&P 500 in 2013. So let’s raise a big hand for Newmont Mining (NEM), Cliff’s Natural Resources (CLF) Edwards Lifesciences (EW), Peabody Energy (BTU) and Teradata (TDC).

In three of the five it’s easy to suss out one of the year’s big themes: The collapse of the commodity bull market. There’s a gold miner–Newmont Mining, which has dropped 51% this year–an iron miner–Cliff’s Natural Resources, which fell 33%–and a coal miner in Peabody Energy, which is off 27%.

What went wrong? Simple: It’s hard to make oodles of cash when the price of your product slides ever lower: Iron ore fell 5.4%, according to FactSet, while coal dropped 11% and gold plunged 28%. Don’t be surprised if the market takes a differentiated view toward commodities in 2014, however.

Take coal, which has been hammered by cheap natural gas and efforts to reduce its use in favor of cleaner alternatives. It could get a boost however if natural gas prices head higher and as Democrats in coal states fight for their lives. Iron, meanwhile, could get a boost if the global economy–and demand–pickup.

Which leaves the poor gold miners, like Newmont. With the U.S. economy looking better and the Fed reducing its bond purchases, the price of gold could remain under pressure in 2014. The good news is that the ratio of the price of gold to the price of gold miners appears extended, and miners might be able to find a way to outperform the precious metal in next year.

About Stocks To Watch

Earnings reports, corporate strategies and analyst insights are all part of what moves stocks, and they’re all covered by the Stocks to Watch blog. We also look at macro issues, investor sentiments and hidden trends that are affecting the market. Stocks to Watch gives you the full picture of the U.S. stock markets, all day long.

The blog is written by Ben Levisohn, a former stock trader who has covered financial markets for the Wall Street Journal, Bloomberg and BusinessWeek.